Category: News

Multiple Jobs Held by One Employee – Is It Lawful to Take on a Second Job?

I. Concurrent employment relationships As a general rule, the Hungarian Labour Code does not contain any prohibitive provision expressly excluding the possibility for an employee to be employed in several employment relationships at the same time — commonly referred to as a second job. It follows from the freedom to enter into employment relationships that […]

Covid-19: Risk of Liability for Damage Contrary to Good Morals in the Case of Trade Credit

In the current crisis caused by the Covid-19 virus, sole traders and company managing directors — despite the suspension of the obligation to file for insolvency — as well as persons responsible for the organisational liability of certain corporate bodies are not entirely out of danger, even in light of the limited measures introduced by […]

BREAKING: No Oral Hearings in Hungary

Pursuant to Government Decree No. 45/2020 (III.14), the government has ordered extraordinary court recesses. Measures are to be taken to prevent and respond to the mass epidemic that endangers the safety of life and property, and to protect the health and lives of Hungarian citizens. Accordingly, Hungarian courts will not hold oral hearings, preparatory hearings, […]

German Federal Court of Justice (BGH): Managing Directors of a German GmbH Do Not Owe a “Duty of Loyalty” to the GmbH’s Creditor

In its judgment delivered on 7 May 2019, the German Federal Court of Justice (Bundesgerichtshof, BGH) held that it is not possible to successfully pursue a damages claim against the managing director of a GmbH (German limited liability company) under Section 826 of the German Civil Code (BGB) for intentionally causing harm in a manner […]

EU E-Evidence Regulation Remains Uncertain

Greater criminal-law cooperation between EU Member States is the objective of the E-Evidence proposals. Whether this objective can be achieved, however, remains uncertain. Half a year after the proposal was introduced, the parties involved are still disputing the design of what may become a future EU regulation. The proposal, which concerns the securing of evidence […]

VW Scandal: Even the Software Update May Be Deceptive

As reported by the MSN news portal, there is a risk that even the software update offered to remedy the fraudulent diesel vehicles may produce questionable results. According to Hartmut Bäumer, a German Green Party politician, the proper solution would be to upgrade the affected vehicles to comply with the Euro 6 emissions standard at […]

Diesel Scandal: A Further 26,000 People May Sue in Germany

According to information from the German magazine Der Spiegel, Volkswagen expects tens of thousands of new claimants in the form of a collective action in connection with the diesel scandal. According to Volkswagen’s information, 23,800 proceedings had been initiated by September, and judgments had already been handed down in 6,000 cases. We have also reported […]

CJEU: The unfairness of exchange-rate risk must be examined even despite state-mandated conversion into forints

Despite the state-mandated conversion into forints, the national court must examine whether the bank acted unfairly when, in a foreign-currency loan agreement, it shifted the entire exchange-rate risk onto the consumer. For years, we have emphasised that the practice of the Hungarian courts, inspired by the Curia, under which they repeatedly ruled in favour of […]

The managing director’s contract may also be terminated orally

According to the Schleswig-Holstein Regional Labour Court (LAG Schleswig-Holstein), unless otherwise provided by contract, the managing director’s employment contract may also be terminated orally. The court dismissed the claim brought by a former managing director seeking payment of further remuneration. According to the judgment, the employment relationship no longer existed at that time. Although no […]

OVG Lüneburg: Volkswagen Cannot Be Prohibited from Carrying out Business Activity

A citizen of Potsdam recently made an unusual application to the City of Wolfsburg, requesting that Volkswagen’s trade licence be revoked. In support of his application, he argued that Volkswagen’s irresponsible conduct endangered the health of citizens and therefore rendered the company unfit to carry on a responsible business activity. (In Germany, this would not […]